44 ◾ Simple Statistical Methods for Software Engineering
Standard Deviation
If we take the square root of the variance of bug x time, we will obtain 11.190
days. is is the standard deviation, SD, of bug repair time, the most commonly
used measure of dispersion. is is larger than the average absolute deviation.
e standard deviation is always larger than the average absolute deviation.
e exact formula for standard deviation, SD, has a small correction for sample
size. Instead of using n as the number of data points, the exact calculation uses n−1,
the degrees of freedom; that is,
SD =
−
−
=
∑
( )x x
n
i
n
2
1
1
(3.3)
e corrected value of standard deviation for bug repair time is 11.284.
Process dispersion can be dened in terms of standard deviation, sigma. It is
a tradition dating back to the 1920s to take process variation as ±3 sigma. e
normal distribution beyond ±3 sigma is disregarded. Mathematically speaking, the
normal distribution runs from minus innity to plus innity. We trim the tails and
take the span from −3 sigma to +3 sigma as the process dispersion. e trimming
rules are associated with condence level. e ±3 sigma trimming rule is associated
with a condence level of 97.3%.
BOX 3.3 THUMB RULES
With experience, people develop thumb rules about using dispersion mea-
sures. Although the rules depend on the individual person, here is an educa-
tive example. e following table shows three ways of applying dispersion.
SNo Purpose Range Considered Confidence Level
1 Business decisions Interquartile 50%
2 Process decisions 3–97 percentile 94%
3 Risk avoidance Max–min 100%
Business decisions are customarily taken to accommodate IQR of varia-
tion. To accommodate more would need an unrealistic budget. Process deci-
sions are made with expectations of reasonably stringent discipline. Risk
avoidance involves understanding and accommodating extreme values. You
can form your own rules of thumb to manage dispersion.